A group of citizens and residents of Federated States of Micronesia (FSM) filed a Civil Action 2021-008 against Bank of Guam at the Federated States of Micronesia Supreme Court yesterday.
Plaintiffs claim damages from Bank of Guam’s handling of deposits from depositors who received financial benefits from the United States government. The suit also alleges misconduct by the Bank for attempting to “influence other people and entities” to not accept checks issued by the US Treasury from people.
The suit was filed by two US citizens and four FSM citizens in FSM who said they were victims of the actions taken by Bank of Guam. They also claimed that there are more people who are affected but are afraid to join the suit and be branded for “stirring trouble”.
The lawsuit alleges 7 violations by Bank of Guam: Breach of Contract, Breach of Fiduciary Duty, Due Process Violation, Violation of Consumer Protection Act, Fraud, Theft and Conversion.
The case claims that the bank, “in absence of fraud”, willfully intercepted, held, delayed and investigated and prevented each of the plaintiffs from depositing and receiving immediate credit from the checks issued by the US Treasury.
According to some of the complainants, they brought their stimulus checks from IRS to deposit in their bank accounts, and staff from the bank received the checks and said the checks should clear after three days. After three days, the plaintiffs’ accounts were still not credited and when they called, they were told to prove their eligibility to the bank. They said the bank refused to communicate the status of their accounts and returned the money to IRS in breach of their contract with account holders, and in violation of their fiduciary duty.
The suit also alleges that Bank of Guam through its employees “contacted individuals and entities including the Bank of FSM as well as various retail establishments and advised them that they were prohibited by law from accepting or negotiating any negotiable instruments issued by the United States Treasury and also threatened these businesses entities with financial harm if they attempt to negotiate any such negotiable instruments.”
The plaintiffs seek injunction requiring Bank of Guam to accept deposits from plaintiffs issued by the US Treasury and credit deposits to plaintiffs’ accounts, to pay pre-judgment and post judgment interests and attorneys’ fees.
Customers of Bank of Guam in Palau also filed a similar suit against Bank of Guam in Palau last December. The case is said to be still in the discovery phase of the legal process.
Palau President Surangel Whipps Jr. moved nearly $30 million of government funds out of Bank of Guam in Palau in response to complaints from account holders in Palau whose accounts were also placed on temporary hold and had their EIP payments returned to IRS.

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3 Comments

  1. I want to know why the bank of guam rejecting the checks …I will get my money or not? I’m a US citizen

  2. I’m the one here as a US citizen I want to make a complaint about that why the Bank OF GUAM rejecting the IRS checks …I’m really confused about this

  3. Strange I Thought I was the only one.. Please let me know how to join the class action suit. I’ve made a formal complaint to the federal reserves, got connected to DC Made another complaint, and finally when connected to LA’s FDIC branch my connection went static. I advice we Micronesian stand up to the Guamanian westernized Tyranny that has been restricting and controlling Micronesia through the banking system. Rise Up Micronesia!! The All seeing Eye is Blind To Us Micronesians.The day We matter is the day we invite the other world powers to build rails and train tracks that unite the belt. Remember A United Micronesia is a strong Micronesia. We are armed with Faith and Winged by The most powerful prayers known. The westernized islands (Guam-CNMI) Has long forgotten the cultural laws of the deep.

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